The owners of two short-term rental properties in Hollywood Park filed a lawsuit against the town of Hollywood Park, claiming the city’s recently adopted ban on short-term rentals, or STRs, violates their property rights.
The background
The plaintiffs—Bonnie Kay Browning, Scott Troen and Champagne Campaign, a company represented by Austin real estate agent Abby Argo—filed suit Dec. 4 in U.S. District Court in San Antonio.
In the suit, the plaintiffs alleged Texas laws have long let residents rent out their homes on a short-term basis, and cities’ studies show STRs do “not produce more nuisances or other issues than long-term rentals or owner occupancies.”
But on Nov. 14, Hollywood Park City Council unanimously approved a ban on STRs, responding to residents’ worries about public safety, property values and maintaining the town’s mainly residential atmosphere.
Local officials said there are at least six STRs operational in town, and the newly approved ordinance requires those short-term rental property owners to fully comply with the local law within six months of ordinance passage. Violations of the new STR law are punishable by fines of up to $2,000 per day.
Digging deeper
Hollywood Park joins San Antonio and other communities grappling with operators of short-term rentals, town leaders said.
City officials did not answer request for comment, but City Council called a special meeting for 6 p.m. Dec. 11 where local elected leaders will have a closed session discussion about the lawsuit.
During the Nov. 14 council meeting, City Attorney Michael McCann said Hollywood Park’s STR ordinance was legally sound, and it was developed with input from council and the public.
Hollywood Park officials said, until recently, they could only use code compliance and nuisance rules to address any complaints about short-term rentals.
In the suit, Browning and Troen, a couple, said they bought their Hollywood Park home in August 2021 with the intent of that house serving as Browning’s primary residence. The couple said they also work and live in the Washington, D.C., area.
Browning and Troen said in the suit they spent money refreshing their Hollywood Park house to serve as a short-term rental while they are both out of town. They added they had never gotten any complaints from neighbors.
Browning addressed council Nov. 14, saying most complaints Hollywood Park residents have about short-term rentals exist in many communities. She also asked local leaders to grandfather her property.
“All of my guests have been five-star guests. I’ve never had any neighbor formally complain about us,” Browning said at the time.
Argo, in the suit, said she bought her Hollywood Park home in February 2021 and, one year later, began renting it out on a short-term basis to generate extra income when she is in town and not working in Austin or occupying her second house there.
Argo claimed she has invested in remodeling her Hollywood Park home, which occasionally accommodates guests for a two-night maximum. She added she has received no complaints.
The takeaway
According to their suit, the plaintiffs described Hollywood Park’s new STR law as highly restrictive, adding long-existing nuisance and code compliance rules could easily cover complaints regarding short-term rentals.
The plaintiffs asked the federal court to rule Hollywood Park’s STR ordinance as violating state and federal private property protections, and hope a permanent injunction is placed against the city’s new law.
